RTGF(SH:605133) Huaxin Securities·2024-06-27 05:30Investment Rating - The report maintains a "Buy" rating for Rongtai Co., Ltd. (605133.SH) [9] Core Views - The company's net profit in Q1 2024 increased significantly, with revenue growth expected to continue [9] - The overall revenue for Q1 2024 was 510 million yuan, representing a year-on-year increase of 16.78%, while the net profit attributable to shareholders was 42.39 million yuan, also showing a year-on-year increase [9] - The company is initiating a refinancing project to enhance its overseas operations, which is expected to support ongoing performance growth [9] Summary by Sections Financial Performance - In Q1 2024, the company achieved a gross profit margin of 21.22% and a net profit margin of 8.0%, with both margins showing slight declines year-on-year [9] - The total market capitalization is 3.5 billion yuan, with a current stock price of 18.7 yuan, reflecting an increase of 18.8% [9] Future Projections - Revenue forecasts for 2024-2026 are 2.83 billion, 3.82 billion, and 4.66 billion yuan respectively, with corresponding EPS of 1.20, 1.77, and 2.37 yuan [14] - The report anticipates significant performance growth driven by the increasing share of new energy business and expansion in Mexico [9][14] Investment Strategy - The company is focusing on expanding its production capabilities, including a new project for intelligent manufacturing of new energy vehicle components, which is expected to enhance its competitive position [9] - The report highlights the potential for substantial performance increments due to the company's strategic investments in overseas markets, particularly in Mexico and Thailand [9]